Unable to sell Property

Big_Savs

Hello,
My Auntie is in a over 55 Extra Care Home - she pays her rent from her Pension.

She has a property that has been for sale for over a year, no reasonable or acceptable offers have been received as the Property does need circa £15k spending on a new Kitchen and Bathroom and decoration.

My Auntie has not £15k available.
I am the sole beneficiary of her will can I buy the property off her at a reduced value (For sale at £64K) then progressively do it up and sell next year without and Tax issues to either myself or my Auntie?

Farway

see a solicitor, there are a billion pitfalls ahead, including "deprivation of assets" and trying to avoid capital gains tax [you do not live in property] to name but two

Biggles

Big_Savs wrote: »

I would like to gift him the property or sell it for a peppercorn amount how do I do it legally?

Why don't you rent it to him?

Mojisola

Big_Savs wrote: »

I am in a care home and still own a retirement flat which has been for sale for 15 months but I cannot find a buyer who wants to offer a reasonable price.

Are you self-funding and do you have enough money to pay for your care until you die without the money from the sale of the flat?

Big_Savs

My Cousin would move in to the property once the renevations were done this could take a whilw as the cost could be about 15K

Big_Savs

I have no where near the Capital Gains threshold even if the Propery dold at the ashing price of 65K....My cousin would move in once he has spend circa 15K renovating the property

Big_Savs

Yes I am self funding...Hard to answer the 2nd question though !!

Mojisola

Big_Savs wrote: »

I have no where near the Capital Gains threshold even if the Propery dold at the ashing price of 65K....My cousin would move in once he has spend circa 15K renovating the property

Big_Savs wrote: »

Yes I am self funding...Hard to answer the 2nd question though !!

Both of you need legal advice about this and to get everything in writing.

If your cousin spent £15k on the flat and moved in and then you needed the money from the flat to pay for your care, that £15k would be lost - although you would benefit from the increased value of the flat.

Spendless

I'd be surprised if you can do this. My Grandmother moved to a care home last month. We have had to give details of her finances, money in bank account, estimated value of her property, any valuables she owns. Once her initial 12 weeks funded are up, she will need to self-fund until she is down to around £23k when she will get some help and once her money has reduced to approx £14k it will be funded by the state.

Savvy_Sue

Nephew / aunty / cousins - who knows?

Bottom line is, the flat's not selling because no-one is prepared to pay 'enough'. Which means it's overpriced. A flat is worth what someone's willing to pay.

Look at it this way: it's on the market for £64k, and it needs 15k of work doing. Are there similar properties for sale or recently sold which have had that work done, and are they going for 79k?